Nonstandard Standardized Test Calls

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As a student, the standardized test may have been one of the first times I was asked to provide personal information like my address and birthday and optional Social Security number on a form. As one of the first times my SSN was queried, I remember my heart racing a bit. I found this sudden transition into adulthood somewhat troubling. Wasn’t I supposed to keep that number a secret? Why did they ask me instead of my parents? Finally, I asked the test coordinators if I had to provide it and they said, “no.” Crisis averted.

I imagine our adolescent Vermonters having the same experience, albeit perhaps more knowledgeable than I was. Even still, standardized tests are unchartered territory. So, when employees supposedly affiliated with the PSAT, SAT or ACT call your home following signup, it may seem possible that it is them. Rest assured, it is not them. It is a scam. They don’t solicit. They won’t call you—unless of course you ask them to call you. But you probably didn’t, because there is a test coordinator at school who helps you with most of the questions you have.

Share the details of this scam with your household and school.

  •  Scammers claim to be affiliated with the PSAT, SAT, and ACT standardized tests, or the administrator, College Board.
    • The caller ID may be spoofed to appear as the College Board even though it is not.
  • Caller says a household student requested test and college prep materials at their school, which will be mailed out after obtaining payment information as collateral. 
  • The caller may state the student’s name, address, along with a date and exam location.

Know that the College Board will “only make calls to students and their families in response to student-generated inquiries and/or to provide students and families with information about a test or program for which the student registered” (collegeboard.org). The College Board does not make unsolicited calls requesting payment or personal information, such as credit card number and Social Security number. Hang up on these calls.

Always take steps to verify unknown contacts by using publicly available contact information, not information provided by the scammer. For upcoming standardized tests occurring at your school, you may also reach out to your school’s test coordinator about procedural questions and planning logistics.

Report scams to the Vermont Attorney General’s Consumer Assistance Program at ago.vermont.gov/cap or by phone at 1-800-649-2424. For more information about this scam and scam prevention resources go to the CAP Connection blog: https://blog.uvm.edu/cap

Learn more about this scam: https://www.bbb.org/article/news-releases/23883-bbb-scam-alert-watch-out-for-sat-prep-scams

Avoid Scams and Fraud During Flood Recovery

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Vermonters have become all too familiar with the difficulties of disaster flooding. We know from experience that as we seek to recover, time is of the essence. We may bypass research gathering steps to respond as quickly as possible to the most pressing needs. When encountering urgent, unexpected, or unfamiliar consumer transactions, like agreements for repair, or disaster recovery, avoid scams and fraud by slowing down and taking steps to verify. Engage trusted contacts to help consider the next steps and to help you make informed consumer decisions.

As we recover: Avoid Scams. Phony charities, government (FEMA) relief, dubious contractors. Ago.vermont.gov/cap

You can further avoid scams and fraud by looking out for the following known disaster scams:

Government imposter relief scams may claim to be the Federal government or the State of Vermont or FEMA. FEMA scams manifest as fraudulent inspectors that request fees for service, or administrative personnel that call to “verify” your information but are phishing for your personal information. Such relief help scams may even claim they can speed up your FEMA relief application for a fee.

Avoid this scam:  Connect with FEMA directly online. Seek updates regarding whether emergency declarations have been made: https://www.fema.gov/disaster/declarations and follow updates from the Vermont Emergency Management.

Phony charities that solicit funds claiming to support recovery efforts. The Vermont way is to help our neighbors. We all want to help, whether it is through volunteering or donating money. Sadly, scammers use the same contact methods as legitimate charities (phone, online, mail).

Avoid this scam:  Please only give to valid charities that you have thoroughly researched and vetted. Use tools like the Better Business Bureau’s Wise Giving Alliance and Charity Navigator to research charities before you donate.

Dubious contractors may appear with promises to restore damages immediately in exchange for immediate payment. Such contractors urge you to act fast, may offer lower prices, and do not have credentials—though they might say they are “registered and insured,” these are unverified statements.

Avoid this scam: Vermonters must be extra critical about hiring home improvement contractors. Never pay in full upfront for a home improvement project. Make sure you have a contract. Reference our Home Repair How-To Checklist for more tips on finding and hiring home improvement contractors.

Please watch out for these scams and report them to the Consumer Assistance Program by phone at 800-649-2424 or online at ago.vermont.gov/cap

More: Visit the Federal Trade Commission on spotting and avoiding post-disaster scams: https://consumer.ftc.gov/articles/how-avoid-scams-after-weather-emergencies-and-natural-disasters

Update August, 20, 2024: “FEMA announced that federal disaster assistance is available to the state of Vermont to supplement recovery efforts in the areas affected by severe storm, flooding, landslides and mudslides from July 9-11, 2024” (https://www.fema.gov/press-release/20240820/president-joseph-r-biden-jr-approves-major-disaster-declaration-vermont).

Protect your small business against fraud with secure payment systems

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“This will end my business operations.”

“I can’t afford to stay open.”

“I am just trying to operate my business.”

Vermont small businesses have reported substantial losses from scams. With more than 76,000 small businesses in the state, representing 99% of Vermont businesses and employing 60% of Vermont’s employees, small businesses are the backbone of Vermont’s economy. We can’t afford for businesses to experience scams. And yet, annually, businesses increasingly encounter new and different scam variations.

When businesses are scammed operations are at risk to be shut down. Their consumers are impacted, too. Whether the scam involves the breach of consumer personal information on file with the business or impacts individuals directly, such as when real estate sales transactions are intercepted. Being aware of the scams is one step to prevention. Remaining vigilant about the services, technologies, and training available to businesses has become even more important.

Learn more about the types of scams impacting businesses. [Link to blog outlining the scams, w/ pie chart of Top 10 impacting businesses]

In a digital age, protecting your small business against fraudulent activity can be difficult, but there are multiple safeguards available to help you avoid scams, protect your business, and keep your customers safe.

Payment Card Industry Security Standards Council (PCI Compliance) are standards outlined for the financial industry to protect data and establish safe payment systems worldwide.

  • PCI compliance of a business payment system helps to protect personal information.

Multi-Factor Authentication can help ensure payments are legitimate.

  • Requires users to provide more than just a password to confirm their identity.
    • Information will be something the user has, like a one-time verification code.

Payment Gateways are services that administer electronic payments (Ex. PayPal, Stripe, Square).

  • Encrypts customer information.
  • Sends encrypted payment information between banks.
  • Intended to safeguard the information of all parties involved in the transaction.

Payment Processing Systems are the systems where payments are processed, or the Point-of-Sale system (POS), like a terminal or similar software.

  • Secure payment processors use chip readers and biometrics to authenticate payments.

Fraud Detection and Prevention implementation adds another layer of protection.

  • Use the Address Verification Service (AVS) to compare the customer billing address to the customer address that the card issuer has on file.
  • Require that consumers enter the Card Verification Value (CVV) to reduce the risk of fraudulent use.
  • Monitor transactions: Regularly review transactions for suspicious activities and set up alerts for unusual patterns.

Train Staff: Your best defense is an informed workforce.

  • Train your staff to properly use payment systems and follow security standards for every transaction, including internally dispersed funds.
  • Stay informed about how common frauds may affect your business and make sure all employees are aware about how to avoid them.

 Resources

The Vermont Small Business Development Center (VtSBDC) provides free guidance to Vermont small business owners.

The Small Business Association connects businesses to state and federal resources and an online learning guide.

When a fraud incident occurs, you can report it to the Consumer Assistance Program. This office tracks scam trends to educate the public and can provide recovery support resources.

References:

https://consumer.ftc.gov/articles/use-two-factor-authentication-protect-your-accounts

https://www.ftc.gov/business-guidance/credit-finance/payments-billing

https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/merchant-processing/pub-ch-merchant-processing.pdf

https://www.fiscal.treasury.gov/otcnet/card-processing.html

https://www.federalreserve.gov/paymentsystems.htm

https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-VT.pdf

https://www.sba.gov/district/vermont

Top Scams Reported by Businesses in 2024

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Of the 3533 scams reported to the Consumer Assistance Program (CAP), 191 were submitted by Vermont businesses. The five most common scams for businesses include: fake orders, utility disconnection threats, imposters of business personnel, government imposters, and business identity theft.

The top scam for businesses to look out for is Order Fraud (fake orders of goods or services):

In 2024, CAP received 65 reports from Vermont small businesses experiencing fake order requests, in which scammers pose as customers initiating purchases. The purchases could be of business’ products, or of the services the business provides. In this scam, businesses are typically offered fraudulent forms of payment (fake checks, stolen credit cards). Sometimes businesses fulfill orders that are never paid for because the scammer’s check bounces, and stolen credit card charges are reversed. 

Sometimes, scammers request overpayments to be sent elsewhere, such as when a scammer sends a fake check to cover the cost of a wedding service but sends too much money and asks the wedding vendor to redirect the overpayment to fake wedding vendor by peer-to-peer payment services (PayPal Friends/Family, Venmo), or wire transfer. In 2024, several Justices of the Peace reported fake requests for wedding officiant services. Scammers similarly targeted realtors by claiming to be property owners seeking a company to help them sell their homes or land. Scammers used actual names listed on deeds, making it difficult for realtors to verify ownership.  

To reduce fraud incidents, always use multiple methods to verify the legitimacy of a potential buyer. While it may be difficult, take steps to verify. Especially for large orders, use address verification services, card verification value checks (CVV), and multifactor authentication for consumer accounts. Do not accept overpayments. Instead, ask for the correct payment amount to be reissued. You never want to be in the position of paying expenses on the consumer’s behalf when that is not a service you provide.

CAP further encourages businesses in Vermont to take the following steps to help prevent scams: 

Train Your Employees: Your best defense is an informed workforce.

Verify Invoices and Payments: Check all invoices closely. Never pay unless you know the bill is for items that were actually ordered and delivered. Train your staff to do the same.

Be Tech-Savvy: Don’t believe your caller ID. Imposters often fake caller ID information so you’ll be more likely to believe them when they claim to be a government agency or a vendor you trust.

Know Who You’re Dealing With: Never send money to parties you cannot verify. Check registration history, recommendations, and confirm contacts by calling. Before doing business with a new company, search the company’s name online with the term “scam” or “complaint.”

Businesses are encouraged to call CAP to report scams, ask questions, and get resources.
ago.vermont.gov/cap
1-800-649-2424

Is that toll payment request from the toll operator or a scammer?

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If you have recently traveled across New England, or maybe even to New York, or New Jersey, you may encounter a toll road. We don’t have toll roads in Vermont, so when we stumble upon them while traveling, the encounter can feel like a new occurrence. Twenty years ago, when the highway sign alerted of an upcoming toll, I would frantically dig around the car for spare coins to hopefully gather enough change to allow me to pass through the toll.

While some tolls have cash and booth payments, I experienced a new toll system a few years ago. While driving in another New England state, I was surprised to see there was no toll booth on a well-traveled toll road, but a digitized pass-through. There was no need to collect change, because the toll was now a series of cameras that would capture my car and license plate by photo and bill me later. While sparing me the unfortunate scenario of being short change, the new system offered a new convenience. The toll booths can seem so stealthy that sometimes, I must admit, I don’t notice them. It’s the not knowing that can make this new scam seem plausible. What if you did travel recently, passed through tolls, and haven’t been asked to pay anything yet?

When scammers text, posing as familiar toll operators and say things like, “Please pay your toll to avoid fines and keep your driver’s license in good standing,” how can you tell if it is the toll operator requesting payment, or a scammer?

The primary identifier is that legitimate toll operators will contact you by mail for any actual delinquent fees incurred when utilizing a toll road without paying.

Do not respond to unsolicited text, emails, or calls demanding payment. Always avoid links from unknown or unsolicited messages.

When in doubt, check it out. Always take steps to verify unknown contacts by using publicly available contact information, not information provided by the solicitor. You may also confirm any state’s toll fee assessment with their tolling agency.

Report scams to the Consumer Assistance Program at ago.vermont.gov/cap or by phone at 1-800-649-2424.